TransUnion lines up $1.4 billion in loans for Callcredit acquisition

NEW YORK (LPC) - US consumer credit reporting agency TransUnion’s acquisition of UK-based peer Callcredit Information Group Limited will be backed by US$1.4bn in leveraged loans, according to two sources familiar with the matter.

Publicly traded TransUnion is buying Callcredit from its current owner, private equity firm GTCR, for £1bn, or US$1.4bn, in cash. The acquisition was announced on April 20.

The financing will include a US$400m add-on to TransUnion’s US$393m term loan A due in 2022 and an incremental US$1bn seven-year term loan B, the sources said. The company currently has a US$1.97bn term loan B due in 2023 outstanding.

Deutsche Bank leads an arranger group that includes RBC Capital Markets, Bank of America Merrill Lynch and Capital One, the sources and a third source familiar said. RBC also served as M&A advisor to TransUnion, two of the sources added.

Deutsche Bank and RBC declined to comment. BAML and Capital One did not respond to requests for comment.

Syndication is expected to begin in mid-to-late May, two of the sources said.

Marketing for the debt will be based on combined last 12-months’ Ebitda, or earnings before interest, taxes, depreciation and amortization, of US$858m, putting the company’s debt-to-Ebitda ratio at 4.3 times, net of cash, the sources said. TransUnion’s current net leverage is 2.9 times, filings show.

“The purchase price is about £1bn, which is approximately US$1.4bn at Friday’s exchange rate. We believe we can finance this transaction attractively based on current market conditions and outlook,” a TransUnion spokesperson said.